Contract Compliance

Welcome! What is Contract Compliance?

The City of New Haven and State of Connecticut spends more than one billion dollars each year to purchase supplies and public works contracting services. Those who contract with the city to provide these services have a special responsibility to assure that the employment and subcontracting procedures promote equal opportunity for all persons.

Contract Compliance laws were enacted as a means of providing equal employment opportunities for minorities and female workers and economic development and business growth opportunities for small contractors and minority and women owned businesses through the distribution of city, state, and federal contracting dollars.

The Commission on Equal Opportunities has the responsibility to review, monitor and enforce the equal opportunity, affirmative action and contract compliance laws of the city, state and federal regulations as they apply to contractors, subcontractors, and goods and services vendor suppliers doing business with the city of New Haven.

Cooperation

In carrying out these responsibilities, the Commission ask that all departments, boards, commissions, agencies, bureaus, officers, officials and employees of the city cooperate with the Commission in implementing contract compliance. The awarding department heads thereof shall furnish the Commission with information in their possession when the Commission requests it. Section 12 _-8

Designating a Contract Compliance Officer

An example of interdepartmental/agency/board cooperation is that all agencies appoint a designated employee as its contract compliance officer who will remain in place for as long as a city agency shall have and continues to award contracts, or so long as such agency continues to award contracts directly.

Other examples of cooperation are the completion and return of CEO Project Fact Sheet and Contractor Information sheet regarding HUD-assisted projects.

What A Contract Compliance Officer Should Say To A Contractor

The compliance officer should inform the awarding agency/department, developer, contractor(s) that they should communicate with the CEO regarding compliance and labor standard issues.

Important! At no time, should a department head or compliance officer authorize a contractor(s) to begin work without first having the contractors attend a pre award conference with the CEO.

At no time should a compliance officer advise a contractor(s) to omit the submission of weekly-certified payrolls and/or other required documents to the CEO.

Minority and Women Apprenticeship Training Programs

The Department of Labor administers apprenticeship programs in the state of Connecticut. Apprenticeship, in simple terms, is a program of "Learning While Earning". Any contract with a value of $500,000.00 and over must have an apprenticeship program in place prior to the start of work on a project. Such apprenticeship programs MUST be registered and approved by the State Department of Labor.

If the workers are not registered and approved by the State, then journeypersons wages are paid. In the apprenticeship system, proficiency in the job is known as "journey person status." An apprentice rest upon the journeyperson who in turn conducts training under guidelines set forth by the employer. These guidelines conform to State and Federal standards.

[Defined in Article II, Section 12 1/2 -33 (b)]
15% of the workforce per craft and trade must be apprentice, and 50% of the 15% MUST be 1st year apprentice. (Example: if 100 laborers are workers 15%, which is 15 people, need to be apprentice. Of the 15% or 15 people, 7.5% or 8 people need to be 1st year apprentice.

The CEO is the only authorized city agency delegated to enforce labor standards. If there are ever any questions as to the legal authority, refer to HUD handbook 1344.1 or Federal regulations.

Sanctions

Failure to comply with city, state, and federal regulations could result in sanctions being imposed on the contractor and/or subcontractor. Sanctions are withholding of payment, prevention of future bidding on city projects, cancellation of contracts, and debarment.

Powers & Duties

Article II Section 12 _ 19 through 12 _ 33 of the City Ordinance gives enforcement authority to the Commission On Equal Opportunity Contract Compliance division with respect to employing women and minorities in the construction trade.

The City of New Haven defines a minority as follows:

Black Americans, including all persons having origins in any of the Black African racial groups not of Hispanic origin; Hispanic Americans, including all persons of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish culture or origin regardless of race; Asian Pacific Americans and Pacific Islanders; or American Indians and persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification.

All contractors are required to prepare a written affirmative action plan stating forth the company's plan and implementation. Should a contractor fail to comply with the affirmative action plan, future payments can be withheld, sanctions imposed or debarment.

The contracting agency and/or administrating agency may use pre-construction conferences to explain the EEO requirements to the contractors and/or other interested parties.

The Executive Director or Contract Compliance Director, shall set the targeted minority and women employment goals for each craft and trade at least once every five years. Assist the contractors and unions in the implementation and maintenance of the goals. Recommendation to the commission of remedial action or penalties in the event of noncompliance.

What is Davis Bacon?

The Davis Bacon Act provides prevailing wage protection to non-government laborers and mechanics working on federally funded projects. According to Davis Bacon, the employer must post in a conspicuous place the wages and benefits for each craft and trade. As part of the employer's compliance, the employer must submit weekly-certified payrolls and a monthly utilization report.

The local public agency that administers HUD programs has to submit to HUD Semi-Annual Report dealing with contracts that was awarded during this period. The local public agency is responsible for the enforcement of the Davis Bacon rules and regulations. One aspect of enforcement is on site monitoring and interviewing of workers.

Davis Bacon Residential Rates apply to buildings of four stories or less.

What are the minimum thresholds for Davis Bacon wages? Federal Projects: $2,000.00 State Projects: Remodeling $100,000.00 State Projects New Construction $400,000.00 and City Projects: $50,000.00.

Exceptions to the minimum thresholds occurs when Section 8 housing has less than nine units or, residential property rehabilitation that is designed for dwelling units less than eight units(CDBG) or the construction of residential property designed dwelling units of less than twelve units (HOME).

What are Prevailing Wages?

Prevailing wages are wages and benefits paid to similarly employed workers in the requested occupation in the area of intended employment. Apprentices must be in a state approved and registered program and receive wages based on their apprentice percentage. If a job category is not on the prevailing wage list write to the federal or state labor department and request a wage rate.

A way to monitor the payment of prevailing wages and benefits is the preparation, by all contractors working on the project, the submission of weekly-certified payrolls and the submission of monthly reports.

All employees should read this rate schedule to make sure the employee receives the correct pay rate. Contractors may pay wages high than the prevailing wage and benefit rates, not lower then the posted rates.

A prevailing wage project nets the taxpayer the best possible finished product. All contractors who bid on the project know in advance what the wages and benefits rates should be paid to employees and can calculate their bid based on these rates. Skilled craftsmen were working on a project and were able to instruct apprentices by giving on the job training.

The employer should maintain accurate payroll records because if an employee works in more than one classification and accurate records are not kept, the employee receives the highest wage classification.

Another reason for the maintenance of accurate payroll records concerns employees who are paid on piecework. These employees are paid on how much work they produce in a day. The weekly earnings have to be sufficient to satisfy the wage requirement based upon actual hours which includes overtime.

Section 3

In the construction trade, Section 3 deals with new hires. The pool of Section 3 applicants are residents of public housing or low-income persons living in an area of HUD assisted housing project.

Section 3 provided economic opportunities in administrative/management, services and construction. Priority for training and employment is given to persons living in public housing and assisted housing. Persons in the neighborhood, participants in HUD youth build programs and homeless persons.
Section 3 has criteria for business in that a Section 3 resident owns, employs Section 3 residents or subcontracts to businesses that provide economic opportunities to low income persons.

Summary

Davis Bacon is the Federal Law that established Prevailing Wages and Benefits. Section 3 provides economic assistance to low income persons entering various trades.

PRE-AWARD CONFERENCE

Purpose

The purpose of a pre award conference is to ensure that all participants are apprised of their responsibilities and obligations regarding all applicable laws, rules, regulations and Ordinances contained in the contract documents.

Pre-award documentation is a must. No project shall commence before a pre award conference is held.

Ordinance Requirements

Section 12 _ -19 through 33 of the New Haven Code of Ordinances, ensures that contractors doing work on city and/or city related construction projects must comply with established goals which have been set in place for utilization of protected classes as follows:

Minority-group: 25 % utilization in each craft or trade working on site per contractor.
Female-group: 6.9 % utilization in each craft or trade working on site per contractor.

A city related construction contract is defined as any construction contract which the city makes any cash payment, payment of in-kind services, or provision of land for construction, and includes any and all contracts involved in any part of an official redevelopment plan of the city where said redevelopment plan requires the city to furnish cash, noncash equivalents or credits, in in-kind services, or any other expenditure of city staff, money or material. Section 12 _ -19 (e).

A third party contract is defined as a contract agreement between the city and developer and the developer and the contractor. Projects involving construction contracts, which are defined as city-related or third party are subject to the same requirements as a city construction project, and must comply with established goals

A supplier, vendor and service contract is defined as non construction providing a service to the city.

The successful bidder and his subcontractors shall be required to attend a pre-award conference. Contractors who are awarded contracts over $50,000.00 shall submit an affirmative action plan and EEO documents subject to review and approval by the CEO before a Pre Award conference is convened. Section 12 1/2-26

No contract over $50,000.00 may be finally awarded until the contract compliance director, or his representative, has had reasonable time to review submissions (Equal Employment Opportunities Package) from the contractor, sub contractor(s), and vendors, and then convene a pre-award conference.

CEO will notify the awarding department, and the contractor or vendor at once as to the intention to schedule the pre-award conference. Section 12-_ -26 (c)

No major subcontractor on any construction project over fifty thousand dollars ($50,000.00) shall arrive on such project until such time as the necessary pre-construction information (EEO Package) has been submitted. Failure to submit EEO Package information shall prohibit the awarding authority from authorizing such a subcontractor to begin work. Section 12 _- 26 (d)

Pre-Award Procedures

After receiving notification of the successful bidder and intent to award a contract, the CEO will:

Review and examine names of firms,

check the contractors' name, its shareholders names, and company name against the State and Federal debarment listing.

Review and enter the contract award information received from the awarding agency.

Forward a letter and EEO pre-award packet to the successful contractor requesting that packet be completed and returned to the CEO.

After return and review of a contractor's EEO packet and Affirmative Action Plan, and there are no deficiencies, the Contract Compliance Pre-Award Specialist will schedule a pre-award conference with the successful bidder and all available subcontractors prior to the start of any construction activities.

Attendees of a pre-award conference shall include the contractor, subcontractors, project managers, and awarding department.
Forms

Fact sheet. The project manager of the awarding department, agency, authority, or board must provide a CEO Fact Sheet on all projects over $50,000.00.
Department project managers will be notified if the project has the appropriate documents and which documents are delinquent.

Contractor Information Sheet for HUD-Assisted Projects should also be completed and returned to the CEO

Minutes Of the Pre Award Conference

Minutes of the pre award conference and a record of conference items discussed shall be prepared and
placed in the successful bidder's file at each pre-award conference. The report will contain and review the following:

MONITORING AND SITE INSPECTIONS

The purpose for site inspections is to verify the accuracy of written reports and submitted certified payrolls, and also to survey the initial compliance difficulties before hiring is completed.

Site Visits

Site visits should be made at least twice in one month, depending on the total assigned projects. All monitors must complete a fact-finding folder on all sites regarding minority and, female compliance prior to site visits.
The folder must include:

Comments regarding non-compliance on the submission of certified payrolls.

Interview Sheets

Daily work force sheets

Citation Booklet

It is important that all utilization monitors be prepared with proper equipment, have some knowledge of that project and personnel, be ready to provide technical assistance and solve issues before enforcement applies:

Site Visits Procedure

The following procedure should be taken during site visits:

Drive to an area where the entire project can be observed. (visual)

Drive/Walk to office or trailer, etc.

Locate the person the charge person (i.e., foreman, supervisor, etc).

Identify yourself and state the reason for your visit (leave a business card.)

Show data breakdown regarding minorities and female workforce percentages recorded from certified payrolls of contractors, subcontractors on that project. Explain the contractors who are in non-compliance regarding payroll submission and minority and female utilization. Finally, offer assistance before issuing enforcement requirements.

Ask if any additional subcontractors have been hired prior to the last site visit.

Request a listing of all contractors, subcontractors working on the project.

Explain that you may interview certain workers on project.

Check to ensure that wage determinations and non-discrimination laws are posted in a conspicuous site.

Monitoring Procedures

It is important that all utilization monitors be an advocate for the workforce while conducting on site inspections or interviews.

The following procedures should be taken while monitoring:

Count and document the total number of workers observed.

Count and document the total number of minorities and females observed.

Observe the workers craft or trade performing.

Select a few workers and interview them. Ask the following questions:

Their name, address.

Last date they worked on project, prior to that day also, hours worked.

Their hourly rate of pay

Their job classification/ along with duties.

Are they an apprentice.

Their tools or equipment used.

Have they been paid time and one-half for hours worked in excess of 40 hrs in a work week

Have they ever been threatened, intimidated, or coerced into giving up any

part of pay.

Document all information received on interview sheet, etc.

Write a statement regarding your remarks.

Give the employee your business card, and explain to them what issues arrived.

Non-Compliance

It is important that all utilization monitors should view non-compliance as the failure of a contractor to utilize minorities, females, and handicapped to the extent reasonable and within his/her ability. This is measured by failure to meet previous goals, labor force assistance or justification, and the failure of a contractor to document any extenuating circumstances.

Reporting non-compliance should be conducted using the following procedures: